Popular Inc. (BPOP), a bank holding company based in Puerto Rico, reported earnings of 82 cents per share in Q4 vs. expectations for 51 cents. The result was 710% above the year-ago figure.

As of year-end 2012, the bank had 232 branches in Puerto Rico, making it that U.S. territory's largest bank; 10 in the Virgin Islands; and 93 in five states — California, Florida, Illinois, New York and New Jersey — under the name Popular Community Bank.

The company is a turnaround story. Popular endured three years of losses in 2008-10 and has been selling nonperforming loan packages to clean up the balance sheet.

A profit of $1.30 per share was achieved in 2011. Earnings jumped 26% to $1.64 last year. The Street expects earnings to rise 63% this year.

Pretax margin was about 10% in 2011 and 2012, which is about half what it was in 2004-05.

In May, the company completed a 1-for-10 reverse split, which is not the way bulls prefer to see a stock exit low-price status.

Popular shares a drawback with the entire banking sector.

On the positive side, the worst appears to be behind Popular.

As Popular pointed out in its recent 10-K report: "The U.S. government has intervened on an unprecedented scale." The stated objective was to improve banks' "ability to raise liquidity," but the likely result may be permanently "increasing the degree or nature of regulatory supervision." Also, moves that require more capital reserves "limit our ability to pursue opportunities in an efficient manner," the 10-K said.

The stock cleared a first-stage base in early January and could be either working on a second-stage base or on a possible return to the 10-week line.

Popular Inc. (BPOP), a bank holding company based in Puerto Rico, reported earnings of 82 cents per share in Q4 vs. expectations for 51 cents. The result was 710% above the year-ago figure.

As of year-end 2012, the bank had 232 branches in Puerto Rico, making it that U.S. territory's largest bank; 10 in the Virgin Islands; and 93 in five states — California, Florida, Illinois, New York and New Jersey — under the name Popular Community Bank.

The company is a turnaround story. Popular endured three years of losses in 2008-10 and has been selling nonperforming loan packages to clean up the balance sheet.

A profit of $1.30 per share was achieved in 2011. Earnings jumped 26% to $1.64 last year. The Street expects earnings to rise 63% this year.

Pretax margin was about 10% in 2011 and 2012, which is about half what it was in 2004-05.

In May, the company completed a 1-for-10 reverse split, which is not the way bulls prefer to see a stock exit low-price status.

Popular shares a drawback with the entire banking sector.

On the positive side, the worst appears to be behind Popular.

As Popular pointed out in its recent 10-K report: "The U.S. government has intervened on an unprecedented scale." The stated objective was to improve banks' "ability to raise liquidity," but the likely result may be permanently "increasing the degree or nature of regulatory supervision." Also, moves that require more capital reserves "limit our ability to pursue opportunities in an efficient manner," the 10-K said.

The stock cleared a first-stage base in early January and could be either working on a second-stage base or on a possible return to the 10-week line.

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03/20/2013 05:05 PM ET

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